0.08%
11.17%
7.73%
-0.06%
6.95%
27.24%
64.57%
AI Spotlight on CP
Company Description
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States.The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products.It also transports intermodal traffic comprising retail goods in overseas containers.
The company offers rail and intermodal transportation services through a network of approximately 13,000 miles serving business centers in Quebec and British Columbia, Canada; and the United States Northeast and Midwest regions.Canadian Pacific Railway Limited was incorporated in 1881 and is headquartered in Calgary, Canada.
Market Data
| Last Price | 115.71 |
| Change Percentage | 0.08% |
| Open | 115.8 |
| Previous Close | 115.62 |
| Market Cap ( Millions) | 107997 |
| Volume | 1036674 |
| Year High | 123.37 |
| Year Low | 101.76 |
| M A 50 | 107.37 |
| M A 200 | 109.93 |
Financial Ratios
| FCF Yield | 1.93% |
| Dividend Yield | 0.66% |
| ROE | 8.22% |
| Debt / Equity | 49.64% |
| Net Debt / EBIDTA | 291.49% |
| Price To Book | 2.45 |
| Price Earnings Ratio | 30.56 |
| Price To FCF | 51.92 |
| Price To sales | 7.49 |
| EV / EBITDA | 17.62 |
News
- 07:21 - Canadian Pacific Kansas City Ltd (CP) Q4 2024 Earnings Call Highlights: Strong Revenue Growth ...
- Jan -30 - Wall Street Loves Railroad Stocks. Could Tariffs Stop Them in Their Tracks?
- Jan -30 - Canadian Pacific Kansas City (CP) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Jan -30 - First look: CPKC Q4 earnings improve
- Jan -29 - Canadian Pacific Kansas City (CP) Tops Q4 Earnings and Revenue Estimates
- Jan -29 - CPKC Down 1.3% After Hours As It Posts a Q4 Earnings Beat, Improved Revenues and Efficiency
- Jan -29 - Canadian Pacific Kansas City: Q4 Earnings Snapshot
- Jan -29 - CPKC delivers strong fourth-quarter results; positioned to accelerate growth in 2025
- Jan -28 - CPKC reaches tentative collective agreement with TCRC-MWED
- Jan -28 - Americold to Build a Cold Storage Facility in Port Saint John, Canada Leveraging Strategic Partnerships with DP World and CPKC
- Jan -27 - CPKC reaches tentative collective agreement with Unifor
- Jan -23 - Analysts Estimate Canadian National (CNI) to Report a Decline in Earnings: What to Look Out for
- Jan -23 - Is Canadian Pacific Kansas City (CP) Among Billionaire Chris Hohn’s Top Stock Picks?
- Jan -22 - CP's Q4 Earnings Coming Up: What's in the Offing for the Stock?
- Jan -20 - Why Canadian Pacific Kansas City (CP) Is One of the Best Shipping Stocks to Invest in Now?
- Jan -14 - Unifor's Canadian Pacific Kansas City members vote to authorize strike
- Jan -08 - CPKC to report fourth-quarter and full-year 2024 results on Jan. 29, 2025
- Jan -07 - Canadian Pacific Kansas City upgraded to Overweight at Stephens
- Dec -23 - 2024 CPKC Holiday Train raises over $1.75 million, collects more than 130,000 pounds of food
- Dec -23 - Billionaire Bill Ackman Owns 10 Stocks -- and Two of Them Could Soar Over 20% in 2025, According to Wall Street
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Grain
Expected Growth : 7.5 %
What the company do ?
Grain from Canadian Pacific Railway Limited refers to the transportation of grains such as wheat, barley, and oats across Canada and the US via CP Rail's extensive network.
Why we expect these perspectives ?
Grain growth driven by strong demand from Asian markets, increased Canadian wheat production, and CP's investments in rail network and logistics. Additionally, the company's focus on supply chain efficiency and competitive pricing have contributed to the 7.5% growth.
Segment n°2 -> Intermodal
Expected Growth : 7.8 %
What the company do ?
Intermodal from Canadian Pacific Railway Limited refers to the transportation of goods in shipping containers that can be easily transferred between ships, trains, and trucks, offering a seamless door-to-door service.
Why we expect these perspectives ?
Canadian Pacific Railway Limited's 7.8% intermodal growth driven by increasing demand for e-commerce and online shopping, resulting in higher volumes of parcel and package shipments. Additionally, the company's investments in digitalization and automation, as well as its strategic partnerships with trucking companies, have improved operational efficiency and expanded capacity.
Segment n°3 -> Energy, Chemicals and Plastics
Expected Growth : 7.2 %
What the company do ?
Energy, Chemicals and Plastics from Canadian Pacific Railway Limited refers to the transportation of energy resources, chemicals, and plastics across North America via rail.
Why we expect these perspectives ?
Canadian Pacific Railway's 7.2% growth in Energy, Chemicals, and Plastics is driven by increasing crude oil shipments, rising demand for frac sand and pipe, and growing exports of petrochemicals and plastics. Additionally, investments in terminal and logistics infrastructure, as well as strategic partnerships, have enhanced the company's ability to efficiently transport energy and chemical products.
Segment n°4 -> Metals, Minerals and Consumer Products
Expected Growth : 7.9 %
What the company do ?
Metals, Minerals and Consumer Products from Canadian Pacific Railway Limited refers to the transportation of goods such as iron ore, coal, and potash, as well as consumer goods like autos and grain.
Why we expect these perspectives ?
Canadian Pacific Railway's 7.9% growth in Metals, Minerals, and Consumer Products is driven by increased demand for commodities, particularly copper and iron ore, from China and other emerging markets. Additionally, growth in consumer goods, such as autos and appliances, contributes to the segment's expansion.
Segment n°5 -> Automotive
Expected Growth : 8.1 %
What the company do ?
The Automotive segment of Canadian Pacific Railway Limited provides rail-based transportation services for automotive products, including finished vehicles and auto parts.
Why we expect these perspectives ?
The 8.1% growth in Automotive segment of Canadian Pacific Railway Limited is driven by increasing demand for electric vehicles, rising exports of vehicles from Canada to the US, and growth in automotive production in Canada. Additionally, CP's investments in rail infrastructure and technology have improved efficiency, reducing transit times and increasing customer satisfaction, leading to higher volumes and revenue growth.
Segment n°6 -> Coal
Expected Growth : 6.8 %
What the company do ?
Coal from Canadian Pacific Railway Limited refers to the transportation of thermal and metallurgical coal from various mines in Western Canada to export terminals and domestic customers.
Why we expect these perspectives ?
The 6.8% growth in coal revenue from Canadian Pacific Railway Limited is driven by increasing global demand for thermal coal, particularly from Asian markets, coupled with a favorable pricing environment. Additionally, CP's strategic investments in its rail network and operational efficiencies have improved productivity, allowing for higher volumes and revenue growth.
Segment n°7 -> Forest Products
Expected Growth : 7.4 %
What the company do ?
Forest Products from Canadian Pacific Railway Limited refers to the transportation of lumber, wood pulp, and other wood-based products across North America.
Why we expect these perspectives ?
The 7.4% growth in Forest Products from Canadian Pacific Railway Limited is driven by increasing demand for lumber and wood products, fueled by the resurgence of the US housing market and infrastructure development. Additionally, the company's strategic investments in capacity expansion and efficiency improvements have enhanced its ability to capitalize on market opportunities.
Segment n°8 -> Potash
Expected Growth : 7.6 %
What the company do ?
Potash from Canadian Pacific Railway Limited refers to the transportation of potash, a key fertilizer ingredient, by the Canadian Pacific Railway, a major North American railroad.
Why we expect these perspectives ?
Potash growth driven by increasing global demand for fertilizers, particularly in Asia and Latin America, coupled with Canadian Pacific Railway's strategic expansion into high-growth markets, improved logistics, and cost savings initiatives, resulting in a 7.6% growth rate.
Segment n°9 -> Fertilizers and Sulphur
Expected Growth : 7.3 %
What the company do ?
Fertilizers and Sulphur from Canadian Pacific Railway Limited refers to the transportation of fertilizers and sulphur products via rail, supporting agricultural and industrial activities.
Why we expect these perspectives ?
The 7.3% growth in Fertilizers and Sulphur from Canadian Pacific Railway Limited is driven by increasing demand for crop nutrients, favorable weather conditions, and strong agricultural production. Additionally, rising sulphur prices and growing demand from the oil refining industry also contribute to this growth.
Segment n°10 -> Non-freight excluding Leasing
Expected Growth : 7.7 %
What the company do ?
Non-freight excluding Leasing from Canadian Pacific Railway Limited refers to revenue generated from sources other than freight transportation and leasing activities.
Why we expect these perspectives ?
The 7.7% growth in Non-freight excluding Leasing from Canadian Pacific Railway Limited is driven by increased demand for energy and industrial products, expansion of crude-by-rail services, and strategic investments in network capacity and efficiency enhancements, resulting in higher volumes and revenue.
Segment n°11 -> Leasing
Expected Growth : 8.2 %
What the company do ?
Leasing from Canadian Pacific Railway Limited refers to the company's practice of leasing locomotives and railcars to other railroads and companies, generating additional revenue streams.
Why we expect these perspectives ?
Canadian Pacific Railway Limited's 8.2% growth is driven by increasing demand for freight transportation, strategic investments in network expansion and efficiency improvements, and a favorable regulatory environment. Additionally, the company's diversified revenue streams, including intermodal and automotive, contribute to its growth momentum.
Canadian Pacific Railway Limited Products
| Product Range | What is it ? |
|---|---|
| Grain Transportation | Canadian Pacific Railway Limited provides grain transportation services to farmers and grain companies, offering a reliable and efficient way to move grain across North America. |
| Coal Transportation | The company offers coal transportation services to mining companies and power plants, providing a safe and reliable way to move coal across the continent. |
| Intermodal Transportation | Canadian Pacific Railway Limited offers intermodal transportation services, providing a seamless and efficient way to move goods in containers between ships, trains, and trucks. |
| Automotive Transportation | The company provides automotive transportation services to car manufacturers and dealerships, offering a safe and efficient way to move vehicles across North America. |
| Energy Transportation | Canadian Pacific Railway Limited offers energy transportation services, providing a safe and efficient way to move crude oil, liquefied petroleum gas, and other energy products. |
| Forest Products Transportation | The company provides forest products transportation services to lumber mills and paper companies, offering a reliable and efficient way to move forest products across North America. |
Canadian Pacific Railway Limited's Porter Forces
Threat Of Substitutes
The threat of substitutes for Canadian Pacific Railway Limited is low due to the high barriers to entry and the lack of viable substitutes for rail transportation.
Bargaining Power Of Customers
The bargaining power of customers for Canadian Pacific Railway Limited is medium due to the presence of large industrial customers who can negotiate prices, but the company's diversified customer base and lack of dependence on a single customer mitigate this power.
Bargaining Power Of Suppliers
The bargaining power of suppliers for Canadian Pacific Railway Limited is low due to the company's large scale of operations and its ability to negotiate prices with suppliers.
Threat Of New Entrants
The threat of new entrants for Canadian Pacific Railway Limited is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry for Canadian Pacific Railway Limited is high due to the presence of strong competitors in the rail industry, including Canadian National Railway Company, and the ongoing competition for market share and pricing power.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 35.23% |
| Debt Cost | 3.95% |
| Equity Weight | 64.77% |
| Equity Cost | 7.82% |
| WACC | 6.46% |
| Leverage | 54.38% |
Canadian Pacific Railway Limited : Quality Control
Canadian Pacific Railway Limited passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| NSC | Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and … |
| CNR.TO | Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. The company's portfolio of goods includes petroleum and chemicals, grain and fertilizers, coal, metals … |
| WAB | Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates through two segments, Freight and Transit. The Freight … |
| UNP | Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, … |
| TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, … |
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